"Reckitt Benckiser has warned it could face a cost hit of up to £150 million if oil prices remain elevated due to the conflict in Iran, and cautioned that consumer demand is also likely to come under pressure."
"The maker of brands ranging from Dettol to Durex said sustained oil prices of around $110 a barrel through 2026 would increase costs by between £130 million and £150 million, although it described this as a 'manageable level' that could be offset through pricing and supply chain adjustments."
"'While challenging to forecast, if commodity prices remain at significantly elevated levels throughout the year, we would anticipate an impact on consumer demand,' the company said."
"Despite the near-term pressures, the company said it remained on track to deliver full-year like-for-like net sales growth of between 4% and 5%."
Reckitt Benckiser anticipates a cost increase of £130 million to £150 million if oil prices stay around $110 a barrel through 2026. The company views this as manageable through pricing and supply chain adjustments. However, high commodity costs may pressure household budgets and consumer spending. Shares fell over 5% following the warning. Despite a 0.6% revenue growth in the first quarter, European sales dropped 4.2%. The company expects full-year net sales growth of 4% to 5% and anticipates profit margins to improve in the second half of the year.
Read at London Business News | Londonlovesbusiness.com
Unable to calculate read time
Collection
[
|
...
]